AM Best Assigns Credit Ratings to Ceres Life Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to Ceres Life Insurance Company (Ceres Life) (Austin, TX). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Ceres Life’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

Ceres Life’s initial balance sheet strength assessment is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s projected investment allocation is expected to reflect a diversified mix of primarily fixed income securities, managed by Arena Investors, LP, a subsidiary of The Westaim Corporation. Additionally, Ceres Life’s growth will be supported by capital contributions from its publicly traded parent, The Westaim Corporation [TSXV: WED].

Ceres Life’s operating performance is assessed as adequate. As a newly formed entity, longer-term profitability trends will still need to be evaluated. Ceres Life’s business profile is assessed as limited, reflecting its recent entrance into the competitive annuity market, with its forthcoming multi-year guaranteed annuity and fixed index annuity products. The company’s business plan centers around its highly scalable, cloud-based technology, which should allow for operational and cost efficiencies. Also, the company benefits from its seasoned management team with strong insurance industry and technology backgrounds. The company’s ERM is considered appropriate. The assessment reflects the establishment of its risk management framework, risk vision statement and oversight of an experienced chief risk officer and executive management team.

As a newly established company, AM Best will closely monitor Ceres Life as it executes on its business strategy. Positive rating movement could occur if Ceres Life demonstrates sustained, profitable premium growth while maintaining the strongest level of risk-adjusted capitalization, as it executes its business plan. Conversely, negative rating action may occur if the company is unable to demonstrate the execution of its business plan or if capitalization or overall balance sheet metrics were to deteriorate materially relative to company-provided projections.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.